blaze gets the deal, page-2

I think its a good deal, and the royalty figures are quiet nice. Could be a nice money spinner.


BLAZE INTERNATIONAL LIMITED 2002-12-03 ASX-SIGNAL-G

HOMEX - Melbourne

+++++++++++++++++++++++++
Blaze International Limited is pleased to announce the signing of a
heads of agreement with Oki Electric Industry Company Limited ("OKI")
of Japan for the commercialisation of their joint communication
technologies to the Japanese consumer market. The commercialisation
agreement follows the development agreement signed in March 2002 and
the successful subsequent trial of the joint technologies, of which
Blaze's facial animation software is a key component.

The principal terms of the heads of agreement are as follows:

a) Mobile Phone Market

- Blaze grants OKI an exclusive right to commercialise the joint
technologies in the Japanese mobile phone industry

- Blaze will earn a 40% royalty on gross revenue from the sales and
licensing of the joint technologies

- Blaze will receive an advance royalty payment of approximately AUD
100,000 (to be paid by OKI prior to product launch)

- OKI agrees to exclusively work with Blaze in employing facial
animation technology in this market.

b) Other Market Opportunities

- Blaze has extended rights and OKI has agreed to exclusively use
Blaze's facial animation software in the development and
commercialisation of applications in the following product groupings

- Home Appliances, PDA (Personal Digital Assistant), Game Consoles,
Home TV-Phones, and ATM and Vending Machines.

- Blaze will earn a 30% royalty on gross revenue from sales and
licensing of jointly developed products in these areas.

c) The agreement is subject to completion of a detailed legal
agreement, board approval from Blaze and OKI executive approval.

It is noted that there are in excess of 67 million mobile phone users
in Japan - all of which are the target market as the joint
technologies address the current 2G market as well as the emerging
3G market. Products will also be developed for the home environment
of over 100 million users. In addition, if the joint technologies are
successful in the Japanese consumer environment a number of further
potential revenue streams exist for Blaze, including consumer
software sales, server development revenue and revenue streams from
content libraries.

The Directors are delighted that nine months of intense work has
resulted in an agreement with a company of the calibre and market
dominance of OKI. The focus of Blaze is now to continue working with
OKI to launch consumer products utilising the joint technologies in
the various product areas.

OKI is a Japanese based company with international business interests
in the telecommunications, networking and information systems sectors
with annual sales in excess of 12 Billion USD.

Blaze via it's facial animation technology enables the creation of
lifelike or animated talking, interactive assistants streamed in real
time efficiently over the internet and the mobile handheld sector.

For further information contact

Trevor Hall
EXECUTIVE DIRECTOR
Blaze International
Phone 0412 855 182